Consumer prices on Long Island, metro area rose at faster rate in April than March, report says
People shopping in Manhattan last month. Credit: Getty Images/Spencer Platt
Consumer prices on Long Island and in the metropolitan area edged up last month as the higher costs of meat, eggs and residential rent were only partially offset by plummeting gasoline prices.
The federal Bureau of Labor Statistics reported Tuesday that its consumer price index for the 25-county region that includes the Island rose 3.9% in April compared with a year earlier. That year-over-year increase was a bit faster than March’s 3.8% but slower than February’s rate of 4.2%.
The price index is a measure of inflation.
The cost of meat, poultry, eggs and fish climbed 6.3% last month compared with April 2024. But grocery prices overall rose 1.1% because of declines in the cost of cereal and baked goods, dairy products and fruits and vegetables. The latter was down 2.6%, year over year.
Residential rents were up 5.5%, which mirrored rises seen in recent months.
The higher costs of food and housing in the metro area were mitigated by a 13.2% decline in gasoline prices between last month and April 2024.
Still, consumers on the Long Beach boardwalk said they continue to scrutinize their monthly expenses to find savings.
"I’m going to use air conditioning less this summer to cut down on my electric bill," said Martina Gomez, 43, a nurse’s aide from West Hempstead. "Everything just keeps going up. When are we going to catch a break?"
Jim Reilly, 70, a retired accountant, said he hopes the new agreement on tariffs between China and the United States will forestall the predicted price hikes and empty store shelves.
"I was relieved when I heard they had reached a deal," the Rockville Centre resident said. "I know it’s only for 90 days, but it’s better than nothing. I now shop at three supermarkets to get as many deals as I can."
Besides groceries and rent, the commodities with the biggest price increases in the metro area in April compared with a year earlier were recreation, up 9.3%; restaurant meals, up 3%; and medical care, up 2.3%, the statistics bureau reported.
Besides gasoline, the commodities with the biggest price declines were clothing, down 1.9%, and new automobiles, down 0.2%.
Nationwide, consumer prices grew more slowly in April than in March. The national price index climbed 2.3% last month, year over year, compared with March's rate of 2.4%
John A. Rizzo, an economist and Stony Brook University professor, said the price indexes for the nation and metro area moved in opposite directions because of the latter's expensive housing and recreation.
"With the cost of living already substantially above national levels, further increases in prices pose significant challenges, especially for low- and middle-income families on Long Island," he told Newsday. "And persistently high housing costs are particularly burdensome for first-time homebuyers."
The rise in consumer prices due to President Donald Trump's tariff policy has been mitigated by months of falling energy prices, experts said.
"This will change over the course of the next several months, and despite the U.S. and China reducing tariffs and pausing them for 90 days, the overall U.S. effective tariff rate is still among the highest since the 1930s and that will be inflationary," said Ryan Sweet, chief U.S. economist at Oxford Economics in Manhattan.
He and others said April's price index won't lead the Federal Reserve to reduce its key interest rate.
"This will likely make the Federal Reserve wait to see more incoming data before taking action to cut rates," said Dawit Kebede, a senior economist for the trade group America's Credit Unions.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
